Source: Clive Maund 08/21/2024
Technical Analyst Clive Maund explains why he believes Lithos Group Ltd. is an Immediate Strong Buy.
We have highlighted the anomalous behavior of Lithos Group Ltd. (OTC: LITSF) stock on several occasions this year, with the stock continuing to drift lower and lower, yet all the while, its Accumulation line has continued to forge ahead, creating a positive divergence that promises a reversal into a major bull market.
A reversal in the stock was called early in July but to no avail — it just continued to fall, but the rate of decline has slowed markedly, as we can see on its latest 6-month chart below, so that downside momentum (MACD) has been dropping out with the preponderance of upside volume — especially in recent weeks with more aggressive buying evident — driving the Accumulation line relentlessly higher.
The technical situation can thus be compared to someone pushing a large beach ball completely underwater, and we know how that ends — with the ball suddenly breaking free and bursting to the surface.
It is thus interesting to see the positive news released by the company yesterday. This news was that Lithos announced positive results from AcQUA™ technology lithium brine tests with SQM on Salar de Atacama Brines.
This news is a really big deal because it means that the technology that the company has been developing to make possible the efficient production of lithium without the need for traditional evaporation ponds actually works and can be implemented. Here are some of the most important paragraphs from the news release. . .
Key achievements:
Exceptional purity: The AcQua technology has achieved interesting rejection rates of magnesium, boric acid (HBO3), calcium (CaCl), and sulphates (SO4), requirements ...
